Over the weekend the cryptocurrency market capitalization has been fighting the resistance at around $224 billion dollar mark and as you can see from the global chart below it has been rejected at those levels.
The evaluation is now heading to find support at the minor range support line around $212 billion mark. As the evaluation broke the prior resistance at $204B creating a U shape formation this may be viewed as a cup and handle pattern as the evaluation now retraces back before another breakout occurs.
Bitcoins market dominance has retraced to its minor support after almost reaching its last year’s peak in December, from which it looks like its starting to bounce and is heading upwards again as the market participants lose confidence.
The market is in red with an average percentage of change among top 100 coins ranging from 1.6-4%. The biggest loser is Electroneum with a double-digit decrease of 19.68% followed by MOAC with a decrease od 10%.
There aren’t any significant news that is impacting the market at the moment. The most significant headline is that of a new study suggesting that the dollar pegged cryptocurrency Tether isn’t impacting the price of Bitcoin.
As reported by cryptovest, the report, titled “The Impact of Tether Grants on Bitcoin” was conducted by researcher Wang Chun Wei of the University of Queensland Business School. Using Value-at-Risk (VAR) analysis, Wang concluded that despite the existence of a “positive relationship” between new Tether grants and “increased crypto-trading the following day,” the effect on trading volumes is temporary, and volume generally returns to normal within five days, without causing any substantial BTC price swings.
“We find no empirical evidence supporting the notion that Tether grants cause subsequent Bitcoin returns to rise on a daily basis. In fact, when we examine the Bitcoin return equation of our VAR model, none of the lagged variables impacts Bitcoin returns. This suggests Bitcoin returns are showing greater signs of market efficiency than previously studied on older datasets,” the paper reads.
Bitcoin Price BTC/USD
From today’s high at $6774 the price of Bitcoin has retraced to $6610 which is a 2.43% decline.
Looking at the hourly chat we can see that the price action is getting close to the descending triangles resistance line which serves as strong resistance and was well respected from 21th of January. As the wave Z ended on that line I projected the price of Bitcoin to head downward creating a lower low around 4700$ and that projection is still in play, but we may see another minor increase before the price starts to fall further down as a last attempt to break the level which will lead up to exhaustion.
Bitcoin is in the sell zone.
S3 5072.8 S2 5813.7 S1 6268.4 P 6554.6 R1 7009.3 R2 7295.5 7 R3 8036.4
Cardano Price ADA/USD
From yesterday’s high at $0.0944 the price of Cardano has decreased by 9.31% and is currently trading at $0.085. The price went even lower today to $0.0825 but has recovered since.
As you can see from the hourly chart the price action looks similar to that of Bitcoin and as well as the global chart – we have a U shaped bottom which resembles a cup and handle pattern. As the market is showing signs of weakness failing to keep up the momentum after breaking the $204B resistance we are likely going to see a further decline with a potential increase at first to its next resistance level which is for the price of Cardano at around $0.1
Cardano is in the sell zone.
S3 0.02233333 S2 0.05033333 S1 0.06666667 P 0.07833333 R1 0.09466667 R2 0.10633333 R3 0.13433333
Stellar Lumens Price XLM/USD
From yesterday’s high at $0.2971 the price of Stellar Lumen has fallen by 10% and is currently trading at $0.264. The price was lower today at $0.254 but has recovered slightly since.
Looking at the 4-hour chart we can see a similar pattern like that of Bitcoin – a descending triangle in which the price action has been bouncing off from January. Currently, the price has fallen below its resistance line after going above it for a short period of time indicating weakness as it entered sellers territory. As I am expecting a new low scenario in the market this implies for Stellar as well but again with a possibility for another increase at first to its upper resistance line at $0.348.
Stellar is in the buy zone on the 4-hour chart.
S3 0.06395000 S2 0.15100000 S1 0.19630000 P 0.23805000 R1 0.28335000 R2 0.32510000 R3 0.41215000
The cryptocurrency market is showing weakness as it failed to keep up the momentum behind the breakout we have seen on the global chart. This may be a short retracement before another runup to the next resistance line, but ultimately I am expecting a lower low for the price Bitcoin and other cryptocurrncies as well.